PTT of Thailand is reportedly set to sign a liquefied natural gas supply contract with Shell Eastern Trading and BP Singapore before the end of the year.
LNG imports under the 15-year contract would start in April, with the company’s CEO, Tevin Vongvanich noting the deal would save the company around US$2,88 billion, Nikkei reports.
The drop in oil and gas prices forced PTT to postpone an earlier contract, turning to the cheaper spot market.
Vongvanich was reported as saying the pricing formula for the new contract is more resilient to price fluctuations.
Thailand, that has started receiving Qatari LNG in 2015, under a sales and purchase agreement signed with Qatargas in December 2012, produces 70 percent of its energy from natural gas.
The company expects its annual LNG imports to reach 5 mtpa by 2017. Thailand is at the last phase of gas production due to the decline in domestic resources, and the company’s investment budget, which has been set at around US$1.25 billion will focus on the infrastructure like LNG terminal and gas pipelines.
Thailand’s energy minister Anantaporn Kanjanarat, was reported earlier in May as saying that PTT is aiming to invest about $28 million to increase the capacity of its Map Ta Phut LNG import terminal by 1.5 million tons of liquefied natural gas per year.
With the expansion completion expected in 2019, the terminal’s capacity would reach 11.5 mtpa of LNG.
LNG World News Staff